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Twitter IPO vs. Silicon Valley Real Estate

The real estate landscape is shifting — and we have Twitter to thank for it.

In other words, it’s not going to get any easier for home buyers in the near future. With Twitter’s recent IPO, according to a recent article in the Merc, there are 1,600 new millionaires here in Silicon Valley.

Like, overnight.

Here’s the highlights:

If you’re thinking of buying a home in the Bay Area, better move quick: More than 1,600 new millionaires are walking around today thanks to Twitter’s initial public offering of stock. That estimate, from financial analysis firm PrivCo, is just one of the ways Thursday’s Wall Street welcome for the San Francisco microblogging service has shifted the local landscape.

Twitter — which sold 80.5 million shares at $26, only to see them shoot as high as $50 once public trading began — will impact local housing prices much as Facebook’s IPO did last year.

This place is so supply-constrained that when you have these large influxes of liquidity, it causes upspikes in price

It’s like concentric circles beginning in Palo Alto. So many of these companies are doing well that next year you’re going to see the East Bay and San Jose start approaching 2007-peak pricing